OCP

Arch Anchor, as a general partner with Waterford Property Company and CrossHarbor Capital Partners, acquired Orangewood Corporate Center (OCP) in 2018 as a value-add office project within Central Orange County’s most dynamic and active development areas.

While the 110,000 RSF office campus boasted a prime location (immediately adjacent to the 57 Freeway and Anaheim’s Platinum Triangle), the property’s in-place rents were roughly 20-30% below market largely due to major building system inadequacies, including significant outdated cosmetic common areas/finishes and deferred maintenance.

The partnership immediately recognized OCP’s value as a well-built, low-rise suburban office campus with abundant surface parking, including tuck-under reserved parking (a rarity for a two-story office building).

After learning that the seller was in a reverse exchange transaction, the partnership put together an aggressive all-cash offer several million dollars below the marketing price, but with a 45-day due diligence and closing period, to meet the Seller’s exchange deadline to ensure surety of close, while allowing the partnership to secure the deal for a lower sale price.

During diligence, the partnership created a roughly $4M capital budget to address the upgrades to all major building systems including roof, HVAC, elevator, fire/life safety in addition to a full cosmetic upgrade to all common areas. This resulted in rents increasing from $2.00/SF to nearly $3.00/SF during the partnership’s period of ownership and having a strong and sustained level of leasing activity since being renovated and under an active “total value” focused ownership.

The property has continued to maintain strong rents and occupancy during the COVID-19 pandemic, a testament to the partnership’s as well as the tenant/user market’s desire to be in superior-located, low-rise, surface-parked suburban office product. The partnership is continuing with its value-add business plan at OCP with a continued focus on delivering the best return to all investors.

TYPE: Suburban Office Campus

SIZE: 110,000 RSF

LOCATION: Orange, CA

STATUS: Active Investment